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Gold hits two-week low as traders anticipate smaller United States Fed rate cut

Gold prices slipped to their least expensive level in nearly 2 weeks on Wednesday, extending declines to a. fourth straight session as markets priced in smaller sized ratecut. bets for the U.S. Federal Reserve's policy meeting this month.

Spot gold dropped 0.2% to $2,486.99 per ounce since. 9:42 a.m. ET (1342 GMT). U.S. gold futures fell 0.2% to. $ 2,518.30.

The pressure has actually mainly been associated with an. expectation that the Fed's going to just cut by 25 basis points. in September, said Peter A. Grant, vice president and senior. metals strategist at Zaner Metals, including the prospects for a. bigger 50 basis point rate cut has eroded.

Traders are confident that the U.S. Fed will cut rates this. month and are pricing in a 59% opportunity of a 25-basis-point cut,. according to CME FedWatch tool.

This week's U.S. financial information, including the ADP employment. and jobless claims reports on Thursday and the non-farm payrolls. report on Friday, will be carefully scanned for cues on the Fed's. rate-cut path.

Bullion was likewise pushed to cover margin calls connected to. equities' weak point, stated StoneX analyst Rhona O'Connell.

Shares fell internationally on Wednesday as tech stocks declined,. hit by a record sell-off for U.S. chipmaker Nvidia and as. expectations of fading worldwide growth bruised riskier properties.

I still think the pattern is up in the rare-earth elements and. these losses are restorative, Grant said.

The non-yielding possession has acquired over 20% so far this year,. striking an all-time high of $2,531.60 on Aug. 20.

We see ascending major oblique resistance at $2,510 per. ounce and significant horizontal resistance at $2,513. The preliminary. breakout target of $2,543 remains, Mike Ingram, market expert. at Kinesis Cash, stated in a note.

Spot silver rose 0.3% to $28.12 per ounce.

Platinum acquired 0.3% to $905.82 and palladium. dipped 0.4% to $934.25.

(source: Reuters)